Libya compensates terror victims

Most of those killed in the Lockerbie bombing were Americans

Libya has paid $1.5bn into a US compensation fund for relatives of victims of terror attacks blamed on Tripoli, the US state department says.

The fund was agreed in August to settle remaining lawsuits in the US.

The attacks include the 1988 Lockerbie bombing that killed 270 people and the 1986 bombing of a Berlin disco which killed three and wounded more than 200.

Under the deal, Libya did not accept responsibility for the attacks, but agreed to compensate victims.

It is the final step in a long diplomatic process, which has seen Libya come back into the international fold.

US contribution

The first $300m Libyan payment into the fund was made on 9 October, shortly after an historic visit to Tripoli by US Secretary of State Condoleezza Rice.

Its second payment of $600m was received on Thursday and a final installment of $600m was made on Friday, said David Welch, the US diplomat who negotiated the settlement.

In exchange, President Bush has signed an executive order restoring the Libyan government’s immunity from terror-related lawsuits and dismissing pending compensation cases in the US, the White House said.

The US and Libya agreed to the compensation deal in August

Our correspondent says it is unclear why it took so long for the money to be paid into the fund.

She adds that there may have been contributions by American companies lured by business opportunities in Tripoli and keen to expedite the process of normalising ties.

The US State Department, however, has insisted that no money from the American taxpayer will be used for the US portion of the fund.

Libya has already paid the families of Lockerbie victims $8m (£4m) each, but it owes them $2m more.

The fund will also be used to compensate relatives of seven Americans who died in the bombing of a French UTA airliner over Chad in 1989.

In 2004, Libya agreed to pay $35m in compensation to non-US victims of the 1986 Berlin bombing.

In the same year, relatives of non-US victims of the UTA bombing accepted a payment of $1m each from the Gaddafi International Foundation for Charity Associations.

Relations between Libya and the US improved in 2003 when Tripoli stopped working on weapons of mass destruction.

The decision led to the restoration of US diplomatic ties with Libya in 2006.

In turn, it was removed from America’s list of countries sponsoring terrorism.

US-Libya compensation deal sealed

The signing comes after a long process of negotiation

The US and Libya are set to renew diplomatic relations after signing a deal to compensate all victims of bombings involving the two countries.

The agreement will fully compensate victims of the 1988 Lockerbie bombing, and of the bombing of a Berlin disco two years earlier.

It will also address Libyan claims arising from US attacks on the Libyan capital, Tripoli, and Benghazi in 1986.

The deal was signed in Tripoli by US and Libyan officials.

David Welch, US assistant secretary of state and Washington’s top Middle East diplomat, met Ahmed al-Fatroui, head of America affairs, in Libya’s foreign ministry to seal the agreement.

When fulfilled, the agreement will permit Libya and the US to develop their relations David Welch US assistant secretary of state

Mr Fatroui told reporters it was “the crowning of a long process of exhausting negotiations”.

Mr Welch said it was a very important agreement that “turns a new page in our relationship”.

“Under this agreement each country’s citizens can receive fair compensation for past incidents. When fulfilled, the agreement will permit Libya and the US to develop their relations,” he said.

Libyan state media said US President George W Bush had sent a message to the Libyan leader, Muammar Gaddafi, saying he hoped relations between the two countries would continue to improve.

The agreement does not constitute an admission of fault by either party.

An international Humanitarian Settlement Fund will be set up in Libya to compensate all American and Libyan claimants.

Foreign companies and international institutions operating in Libya, which include some American companies, will contribute to the fund.

The deal also paves the way for a full restoration of relations, including the opening of a US embassy in Tripoli and direct US aid.

In all, there were 26 lawsuits filed by American citizens against Libya and three by Libyan citizens against the US.

The 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, killed 270 people and the 1986 bombing of a Berlin disco killed three people and wounded more than 200.

Libya says at least 40 people died in the US air strikes.

Relations between Libya and the US have improved dramatically since 2003, when Libya accepted responsibility for the Lockerbie bombing.